November 2, 2021
Wisconsin-based Generac Holdings Inc. (“Generac”), a manufacturer of power products with a focus on clean energy solutions and services, is acquiring Ecobee Inc. (“Ecobee”) for $770M USD to increase its position in the connected smart home energy consumer market. Generac will pay $200M in cash along with $450M in common stock to the current equity holders of Ecobee. Upon achievement of certain performance targets, Ecobee may receive an additional $120M of Generac common stock. Ecobee will continue to operate as a standalone subsidiary of Generac upon completion of the transaction.
Ecobee is a Toronto-based company which uses its smart thermostats to optimize heating and cooling systems to deliver energy savings for homeowners. Ecobee’s devices are in more than two million homes in North America. Most recently, the company has moved into the home security industry, adding a smart camera with voice control and wireless sensor that connects to its cameras.
In response to the acquisition, Stuart Lombard, Ecobee’s CEO and founder stated “We could have remained standalone… but getting to market faster, bringing this value to consumer[s] faster was the right thing to do for everyone and I’m super excited.” Lombard additionally noted that the acquisition will allow Ecobee to reach a more global audience, as he stated, “Generac… [is] a global company, and so our ability to go global for example, with Generac, is going to be much faster and much easier than if we were trying to do it alone.”
To date, Ecobee has raised over $200M in venture capital, which includes an investment from Amazon through its Alexa Fund. Ecobee has also been supported by several prominent Canadian investors like the Business Development Bank of Canada, Northleaf Capital Partners, Relay Ventures and Caisse de dépôt et placement du Québec (CDPQ).
By: Matthew Erdman